Unfolding the impacts of transaction-specific investments: Moderation by out-of-the-channel-loop perceptions and achievement orientations

When distribution channel partners make specific investments, tailored to a particular supplier, it could prompt either opportunism or beneficial (e.g., extra-role) behaviors. The impact of the investment in turn may depend on whether the channel partner perceives that it is being left out of the channel loop by the supplier, as well as that partner's achievement orientation. This study considers a sample of 155 IT professional service firms and finds that their knowledge-intensive, transaction-specific investments (TSIs) encourage distinct behavioral intentions. If they perceive that the supplier is leaving them out of the channel loop, the effects of the TSIs get amplified in relation to opportunistic and extra-role behavioral intentions. Furthermore, the firms' achievement orientation moderates these influences. Suppliers thus should attend closely to achievement-oriented partners to ensure they do not perceive that they have been left out of the channel loop.     

Why do off‐shored Indian call centre workers want to leave their jobs?

Employee turnover is a major problem in off‐shored Indian call centres. Agents who service Western customers often face hostility and racial abuse because of who they are and where they are located. A substantial part of job‐related training focuses on teaching employees to manage their identity and modify their accent. Based on a sample (n = 211) of Indian call centre workers servicing international customers, we explore these issues and investigate how they affect employee turnover intentions. The study utilises Taylor and Bain's (2005) distinction between factors particular to the Indian context and those more generic to the call centre labour process to better understand the drivers of turnover. We found that a number of distinctive factors including accent modification difficulty, stigma consciousness, racial abuse and perceived favouritism were associated with turnover intentions. The study also revealed that certain job‐related factors related to intentions to leave, including routinisation and poor promotional opportunities.     

Telling tales: online comic and gripe story‐sharing by service workers about difficult customers

The article extends previous research on the storying practices of service workers, workplace humour as resistance, and workers’ autonomous use of social media. Discussion strings from two hairstylist forum storylines, exemplifying comic and tragic story‐sharing about difficult customers, were analysed using Gabriel's notion of story‐work. Processes of coping, entertainment, identity‐construction and learning are clearly evident in the discussion strings and social media is confirmed as a ‘new’ terrain for the enactment of employee agency. Findings emphasize that service workers are engaged in contradictory and ambiguous relations of resistance and accommodation as they learn how to deal with difficult customers. The article's contribution is to show how service workers share their fears and anxieties about difficult customers through storying and humour in generative dialogical poietic processes in social media. Further research is suggested.     

When do they care to share? How manufacturers make contracted service partners share knowledge

Manufacturing firms that outsource customer-facing services, risk losing touch with their customers and thereby forfeit valuable market and customer-related knowledge. To maintain informed and competitive, the manufacturer's customer-facing service partners should engage in knowledge sharing and transfer their market knowledge and insight to the firm. Building on knowledge transfer and organizational learning theory, this study investigates how contractual and non-contractual (i.e., relationship) characteristics influence knowledge sharing behavior by service partners. The authors specifically distinguish between sharing exploitative knowledge (insights that help the manufacturing firm to refine current skills and procedures) and exploratory knowledge (insights that help the manufacturing firm to challenge prior approaches to interfacing with the market). Based on survey data from 70 relationship managers from a large multinational firm and partial least squares path modeling, results show that contractual incentives had a negative effect on exploratory knowledge sharing, but not on exploitative knowledge sharing. The level of contract specification and relationship quality positively related to both types of knowledge sharing. Relationship manager experience related positively to exploratory knowledge sharing, but not to exploitative knowledge sharing. These findings provide valuable insights on how (non-)contractual mechanisms can be used to manage knowledge sharing in outsourced services.     

Service inside: The impact of ingredient service branding on quality perceptions and behavioral intentions

Extant literature on ingredient branding is directed at tangible products but does not account for the role of services as ingredients. For B2B suppliers, however, service is emerging as the dominant route to achieving competitive advantage. The purpose of this research is to investigate how ingredient service brands impact customer preferences on B2B markets. We specifically assess how ingredients might impact industrial buyers' quality perceptions of the end product. By conducting a within-subjects scenario-based experiment among industrial buyers, we find a positive effect of the presence of an ingredient service brand on buyers' perception of the end product's service quality, whether the host brand is of higher or lower quality. The effect is stronger when the quality of the host brand is lower. Furthermore, results indicate that the host brand generally has a stronger impact on the quality evaluation of the end product meaning that an ingredient service brand cannot fully compensate for a lower-quality host brand. For managers, our findings indicate that ingredient service brands provide a cue to product quality of the end product, indirectly improving purchase intentions. As a result, branded service ingredients offer host service brands as well as ingredient service brands a potentially powerful strategy for improving competitive position in B2B markets.     

The strategic role of relational capabilities in the business-to-business service profit chain

This paper extends the original service profit chain by examining the role of relational capabilities with employees, customers and strategic partners on process and performance outcomes in a business-to-business context. More specifically, we demonstrate how satisfied and loyal employees are better in developing relationships with customers and strategic partners. These relationships enable firms to be more responsive towards customers and become more innovative, which increase customer satisfaction and loyalty and, ultimately, financial performance. Our results provide support for the development of relational capabilities in a business-to-business environment by extending the service profit chain (SPC) model. However, we find that while the development of strong customer relationships contributes to an improved service responsiveness of the firm, strategic partners do not.     

Brand equity in the professional service context: Analyzing the impact of employee role behavior and customer-employee rapport

The study examines whether factors related to customers' perception of employees' behavior in terms of customer perceived role ambiguity, role overload and customer-employee rapport influence the development of brand equity in the professional service context. 632 customers of one of the Big Four auditing companies participated in the study. The results of structural equation modeling show negative effects of role ambiguity and role overload on brand associations, perceived quality and brand loyalty, which constitute brand equity. The findings indicate a positive effect of customer-employee rapport on the enhancement of B2B brand equity. However, the negative influences of role ambiguity and role overload on customer-employee rapport transfer detrimental indirect effects on brand equity. The study contributes to an understanding of how the real interaction between service providers and customers can influence brand equity in the professional service setting.     

Service guarantees as a base for positioning in B2B

Research in marketing has shown that service guarantees can contribute to gaining a competitive advantage. However, studies of perceived benefits have mostly been investigated in a consumer marketing context while prior research in B2B has been limited. Given the peculiarities of B2B marketing we investigate the value of service guarantees for industrial customers. We report findings from two studies of attitudes to service guarantees and their effects on purchase intentions and customers' willingness to pay a price premium. Our findings based on conjoint analysis show that service guarantees can deliver added value to B2B customers with implications for positioning strategies. Buyers in B2B markets are encouraged to consider the potential positioning effects of service guarantees for their organization.     

Service innovation of cold chain logistics service providers: A multiple-case study in China

This exploratory study investigates how cold chain logistics service providers (LSPs) in emerging markets gain competitive advantage through service innovation, and how state ownership and regulatory pressure influence their innovation practices. By applying a multiple-case study research design, this study examines service innovation in four leading cold chain LSPs in China. For each case, specific service innovation practices are documented and coded according to the service innovation framework adapted from previous research. The results show that service innovation is indeed important impetus for cold chain LSPs' superior competitiveness, even though previous research suggested that firms in this industry are not as innovative as others. Cold chain LSPs in emerging markets tend to innovate in providing new value-added and differential service offerings to specific customers, industries or regions. Cross-case analysis also reveals that high state-owned share and regulatory pressure may limit LSPs' capability for investing service innovation and developing novel business models.     

矿区服务质量文化建设探讨

质量是企业核心竞争力的根本要素,产品质量的好坏体现了一个企业的质量文化素质,服务质量的好坏体现企业在顾客心目中的形象。针对服务质量文化建设中的薄弱环节,探讨了如何建设服务质量文化建设的软环境,提出了矿区服务质量文化建设,提升企业竞争力的措施。     

Communicative skills that support value creation: A study of B2B interactions between customers and customer service representatives

Although interaction has been acknowledged as central in value creation there is still a lack of empirical studies on how value creation is accomplished in practice, and in particular how communicative skills support customers' value creation. The purpose of this paper is therefore to generate a deeper understanding of how customer service representatives' communicative skills in conversations with customers support customers' value creation. We argue that value creating processes correspond to customers' roles as “feelers”, “thinkers” and “doers”. Accordingly, value creation involves three interdependent elements, an emotional, a cognitive and a behavioral. Based on a qualitative research design, drawing on an empirical study of 80 telephone conversations between customers and customer service representatives in a business-to-business context, the paper demonstrates three communicative skills that are essential in supporting customers' value creation: attentiveness, perceptiveness and responsiveness. The findings show how employees, by means of these communicative skills support customers' value creation. Attentiveness supports cognitive elements of the customers' value creating processes, whereas perceptiveness supports value creation in terms of cognitive, behavioral and emotional aspects. Finally, responsiveness supports the customer's cognitive as well as behavioral value creation.     

Understanding the service infusion process as a business model reconfiguration

This study conceptualizes service infusion as a business model reconfiguration by using a process perspective. Service infusion is therefore understood as a process affecting the business model dimensions of transaction content, structure, and governance. The service-related reconfiguration of the business model is explained by underlying knowledge conversion mechanisms, which provide insights into the development of reconfiguration capacities as important enablers for business model change. Furthermore, this study introduces the concept of service defusion as an important counterpart to service infusion. Both concepts together are found to fully capture firms' strategic options with respect to their service offering components (transaction content), their engagement with, and disengagement from, important business partners (transaction structure), and also their interactions with these important business partners (transaction governance). The conceptually derived understanding of the service infusion process and mechanisms are exemplified via a multi-actor longitudinal illustrative case study. A conceptual grounding for understanding service infusion processes for further theory and concept development is provided, and managers gain an understanding of how to effectively manage the processes underlying service-related business model reconfigurations.     

Identifying service strategies in product manufacturing companies by exploring environment-strategy configurations

Higher market complexity and increasing competitive intensity are forcing traditional product-manufacturing companies to change their position in the goods-services continuum by continuously extending the service business. However, the existing literature tends to be somewhat vague in defining service strategies for manufacturing companies wishing to move along the continuum. The purpose of this study is to identify service strategies that correspond with specific environment-strategy fits. Using an exploratory factor and cluster analysis for testing Western European firms, the study highlights four different service strategies. The four service strategies include after-sales service providers (ASPs), customer support providers (CSPs), outsourcing partners (OPs), and development partners (DPs). After-sales service providers concentrate on cost leadership and ensure proper functioning of the product. Customer support providers form a unique value proposition by investing in a strong product and service differentiation. Outsourcing partners combine cost leadership with service and product differentiation to offer attractive prices for operational services. Their goal is to assume the operating risk and full responsibility for the customer's operating processes. Development partners provide research and development services to create a situation in which customers benefit directly from their development competencies.     

Service quality versus service experience: An empirical examination of the consequential effects in B2B services

The present study investigates the role of service experience in B2B services vis-a-vis service quality. In particular, the study addresses the question: how do the relative effects of service quality versus service experience in a B2B setting influence the immediate (satisfaction and perceived value) and subsequent customer outcomes (loyalty and word of mouth)? To this end, three surveys were conducted (with a combined sample size of 626) of customers of financial consultancy services. The collected data is subjected to factor analysis and structural equation modeling to test the study hypotheses. Major findings indicate a stronger influence of service experience on satisfaction and perceived value as compared to service quality. Results also show a stronger indirect effect of service experience on loyalty and word of mouth (via satisfaction) compared to service quality. In addition, service experience was found to influence both perceived utilitarian and hedonic value derived from service while service quality was found to influence only utilitarian value. The findings underline the importance of service experience in a B2B setup.     

Customer churn analysis: Churn determinants and mediation effects of partial defection in the Korean mobile telecommunications service industry

Retaining customers is one of the most critical challenges in the maturing mobile telecommunications service industry. Using customer transaction and billing data, this study investigates determinants of customer churn in the Korean mobile telecommunications service market. Results indicate that call quality-related factors influence customer churn; however, customers participating in membership card programs are also more likely to churn, which raises questions about program effectiveness. Furthermore, heavy users also tend to churn. In order to analyze partial and total defection, this study defines changes in a customer's status from active use (using the service on a regular basis) to non-use (deciding not to use it temporarily without having churned yet) or suspended (being suspended by the service provider) as partial defection and from active use to churn as total defection. Thus, mediating effects of a customer's partial defection on the relationship between the churn determinants and total defection are analyzed and their implications are discussed. Results indicate that some churn determinants influence customer churn, either directly or indirectly through a customer's status change, or both; therefore, a customer's status change explains the relationship between churn determinants and the probability of churn.     

Knowledge Acquisition in University–Industry Alliances: An Empirical Investigation from a Learning Theory Perspective*

A firm's technological knowledge base is the foundation on which internal product and process innovations are generated. However, technological knowledge is not accumulated solely through internal learning processes. Increasingly, firms are turning to external sources in the technology supply chain to acquire the technological knowledge they need to introduce product and process innovations. Thus, the successful structuring and executing of partnerships with external “technology source” organizations is often critical to competitive success in technologically dynamic environments. This study uses situated learning theory as a basis for explaining how factors inherent to the knowledge acquisition context may affect the successful transference of technological knowledge from universities to their industry partners. Data collected via a survey instrument from 104 industry managers were used to explore the effects of various organizational knowledge interface factors on knowledge acquisition success in university–industry alliances. The organizational knowledge interface factors hypothesized to affect knowledge acquisition success in the current research include partner trust, partner familiarity, technology familiarity, alliance experience, formal collaboration teams, and technology experts' communications. Results indicate that partner trust predicts the successful acquisition of tacit knowledge but not explicit knowledge. Both forms of knowledge are predicted by partner familiarity and communications between the partners' technology experts. These findings suggest three principal managerial implications. First, although the development of a trusting relationship between the knowledge source and knowledge‐seeking parties is generally advisable, firms that seek to acquire explicit technological knowledge from their alliance partners may successfully do so without having made significant time and energy investments designed to assure themselves that they can trust those partners. The relative observability and verifiability of explicit knowledge relative to tacit knowledge may enable knowledge‐seeking parties to have greater confidence that knowledge has been acquired when partner trust is in question or has not been deliberately developed. A second implication is that, other things being equal, a knowledge‐seeking party's interests may be best served through repeated exposures to particular alliance partners, particularly if those exposures facilitate mutual understandings on relevant process‐related matters. A third managerial implication is that ongoing, broad‐based communications between the partners' technology experts should be used to effect technology transfer. A key quality of the organizational knowledge interface that promotes the successful acquisition of technological knowledge, both tacit and explicit, is multipoint, real‐time contact between the technology experts of the partner organizations. Such communications potentially enable the knowledge‐seeking party to directly access desired information through the most knowledgeable individuals on an as‐needed basis.     

Mobile targeting in industrial marketing: Connecting with the right businesses

Although the existing literature has acknowledged the importance of mobile marketing, few scholars have examined the efficacy of mobile targeting. This paper contributes to the burgeoning literature on mobile targeting by investigating the effects of customer mobile habits and social capital on firm sales. Leveraging unique customer mobile browsing data from a major telecom service provider in China, we use a Bayesian SEM (structural equation modeling) approach to show that customer mobile habits and social capital exert significant influences on customers' purchase intentions. Specifically, customers who engage in more hedonic mobile behaviors, such as social networking, video browsing, and gaming are associated with a higher probability of purchasing, controlling for the usage of communications apps including messaging and emailing apps, and the usage of functional apps, such as maps, living services, and app market apps. Additionally, our research results reveal a significant positive effect of social capital on firms' sales performance. These findings offer important insights that are often missing from organizational targeting campaign designs in terms of targeting both the right customers and the right business alliance partners and enable a better understanding of managerial and decision-making implications in the context of the B2B market in general.     

Network configuration,customer centricity,and performance of open business models: A solution provider perspective

While research has shown a positive impact of open business models on value creation, it has remained silent on the configuration of the corresponding partner networks and their effect on performance. Studying three cases of solution providers which involve external service partners for solution delivery, we find that solution customer centricity – the degree to which the focal firm focuses on solution customers in the joint delivery of solutions – moderates the relationship between partner networks and open business model performance. For open business models with low solution customer centricity, a network configuration characterized by many weak ties to service partners leads to superior performance. Conversely, for open business models with high solution customer centricity, few but strong ties to partners lead to superior performance. Based on these findings, three ideal configurations of networks for open business models are derived: the controlled, the joint, and the supported model.     

Growing with the market: How changing conditions during market growth affect formation and evolution of interfirm ties

Research Summary: Market conditions are known to matter for firm performance and growth. This study explores how changing levels of uncertainty and competition affect interfirm ties of entrepreneurial firms as markets transition from nascent to growth stage. Tracing six entrepreneurial game publishers during the growth stage of the U.S. wireless gaming market, the findings reveal that in a growth stage market, as uncertainty decreases, certain ties of entrepreneurial firms are terminated. First, existing partners may cut ties and become competitors after entering the market directly. This is a “winner's curse” as more successful firms are more likely to entice their partners to enter the market directly. Second, ties may be terminated as prominent firms that are “overwhelmed” with too many partners cut ties with low to mediocre performance, while their remaining partners enter a positive spiral of tie strength and performance. Finally, as uncertainty decreases, new firms may enter the market as competitors to prominent firms. While entrepreneurial firms with high‐ and low‐performing ties to prominent partners may find ties with these new entrants attractive, those with mediocre ties to few prominent partners find this move too risky and wait for a first mover to legitimate it. Overall, the findings show that changing levels of uncertainty and competition in growth stage markets can have different consequences for firms due to heterogeneity in their ties and power relative to partners. The findings provide several contributions to literature regarding the relationship among interfirm ties, firm performance, and market evolution. Managerial Summary: Based on interviews at six entrepreneurial game publishers in the United States and their partners, this study shows how changing levels of uncertainty and competition in growing markets can have different consequences for firms based on the different types of alliances in their portfolio and their power relative to partners. The findings highlight the importance of managing partners differently based on alliance type and goal of the partner. They advocate remaining flexible in alliance management as information asymmetries, intentions and bargaining power of partners can change and lead to abrupt alliance dissolution. They show that alliance portfolio management goes beyond a firm's capability of managing individual alliances, and provide a tool for managers to evaluate their alliance portfolios and take the necessary precautions.     

Blind date? Intermediaries as matchmakers on the way to start-up—industry coopetition

This article explores intermediaries as a missing link in initiating coopetition between established industry firms and start-ups. Research establishes that partner search and compatibility are critical success factors from the very beginning of coopetition. As many relationships fail owing to the absence of partner fit, knowledge on facing the challenge at this early stage is highly relevant. By applying a network perspective, we propose that intermediaries can bridge partners and hence overcome this initial hurdle. Based on a case study of an intermediary high-tech incubator, we examine the triad of start-ups, incubator, and established industry firms. Findings show how the involvement of an intermediary can facilitate the initiation of coopetition. The key contribution is an inductive model illustrating the interaction of the dimensions of incubator-initiated start-up–industry coopetition. We highlight an incubator's quality filter function evolving from bridging matchmaker and initial broker and demonstrate the added value to the initial partner search and compatibility. We enrich coopetition with network theory and provide implications on how incubators can provide an important foundation for establishing coopetition between start-ups and industry firms.